How High Will Interest Rates Go?

Jun 7, 2022

By The Small Exchange

Overview

Interest rates can affect everything from your car loan to the stock market, and they've been moving higher recently. Futures traders Jermal and Frank look at data going back to 2010 to see just how high interest rates have been in the past, and they use this information to formulate some trade ideas in the current futures market.

2YR interest rates are currently at historical highs, while 30YR rates are in the middle of their historical range. Value traders could find opportunity in selling S2Y futures if they wanna be short rates or buying S30Y futures if they wanna be long rates, or they could do both to create a spread trade!

Content

0:15 How High Will Interest Rates Go?

2:10 US Interest Rates have Returned to their Highs

2:27 Current Highs in Interest Rates

3:45 The Last Decade's Data

6:40 Future Outlook

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